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View Claim Ledger →E2E Networks Ltd — Q4 FY26
E2E Networks delivered a standout Q4 FY26 with revenue surging 186% YoY to ₹95.6 crore, driven by strong GPU utilization (~80% in March) and operating leverage.
bullish
high
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E2E Networks delivered a standout Q4 FY26 with revenue surging 186% YoY to ₹95.6 crore, driven by strong GPU utilization (~80% in March) and operating leverage. EBITDA margin expanded 413 bps sequentially to 60.7%, while PAT turned positive at ₹2.2 crore vs a loss in Q3. The company is scaling aggressively: a 1,024-GPU B200 cluster goes live mid-May, with another 1,024 planned, targeting at least 6,000 GPUs under management by FY27-end. Management is exploring asset-light partnerships (e.g., L&T MoU) to accelerate capacity without diluting equity. Demand remains robust across inference and training, with pricing stable to firm. Key risk: execution delays in Blackwell deployment could push revenue recognition and strain near-term cash flows.
Promises0 met · 2 missedRisks4 trackedTranscriptfull text
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0 delivered, 1 close, 2 missed.
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Risk Intelligence
Blackwell deployment delays
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Transcript
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Read Transcript →Quarter Snapshot
GPU Utilization (March)
~80%
+8pp YoY
Overall capacity utilization reached ~80% in March, up from ~72% in Q4 FY25.
International Revenue Share
35-37%
flat
International customers contributed 35-37% of Q4 revenue, consistent with prior quarters.
GPU Capacity Under Management
3,900
+144% YoY
Total GPU capacity (including CPU/storage) stood at 3,900 units as of March 2026.
B200 Cluster Deployment
1,024 GPUs
new
First 1,024-GPU B200 cluster expected to go live mid-May 2026; second cluster planned.
What Changed vs Last Quarter
NEW
B200 cluster go-live mid-May 2026
First 1,024-GPU Blackwell cluster to be operational by mid-May; second 1,024 cluster in subsequent months.
NEW
Minimum 6,000 GPUs under management by FY27-end
Management guided at least 6,000 GPUs under management by end of FY27, with potential upside.
NEW
Exploring asset-light partnerships for GPU expansion
Company is evaluating structured financing and partnerships (e.g., L&T MoU) to accelerate capacity without diluting equity.
DROPPED
MRR target of ₹35-40 crore by March 2026
Management reiterated achieving a monthly revenue run rate of ₹35-40 crore by March 2026, driven by India AI mission ramp-up and enterprise conversions.
DROPPED
Blackwell GPUs to go live before Q4 FY26 end
The 1,024 Blackwell GPUs are expected to be deployed and generating revenue before the end of Q4 FY26.
DROPPED
EBITDA margin target of ~70%
Management indicated that EBITDA margins should trend towards ~70% as scale improves, from the current 56.6%.
DROPPED
India AI mission payment cycle shifting to monthly
Management noted that the India AI mission payment cycle is expected to shift from quarterly to monthly, improving cash flows.
NEW RISK
Lumpy revenue from small GPU base
Despite improving, revenue remains lumpy due to small absolute GPU count; large customer churn could cause volatility.
NEW RISK
Depreciation drag on reported profitability
Depreciation rose to ₹51.3 crore in Q4, driven by heavy capex; PAT may remain under pressure until utilization fully ramps.
NEW RISK
Competition and GPU pricing pressure
Rapid tech advancements (e.g., Vera Rubin) and domestic competitors could pressure GPU rental pricing over time.
RISK GONE
December Mumbai outage impact
A major outage in Mumbai servers in December 2025 could lead to customer churn, though management expects no material revenue impact.
RISK GONE
Dependence on NVIDIA GPUs
Management confirmed near-term reliance on NVIDIA, but rising competition from ASICs (e.g., Google TPUs) could pressure pricing or demand.
RISK GONE
High depreciation and finance costs
PAT remains negative due to elevated depreciation and interest costs from aggressive capex; profitability inflection depends on utilization ramp.
Fast read
Guidance and risk preview
First 1,024-GPU Blackwell cluster to be operational by mid-May; second 1,024 cluster in subsequent months.
B200 cluster delayed from earlier timeline; any further delays could impact revenue ramp and customer commitments.
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